Are you wondering, “should I fix my credit score?” That 3-digit score can make or break your retirement and many financial decisions in between!
A high credit score doesn't happen without working for it! Anything over 670 puts you in a better position to enjoy the benefits of good credit. What financial moves can you make with a better credit score? Check out these four benefits!
1. Access Better Loans and Lines of Credit
If you're holding off on a plan to "fix my credit," you could be missing out on better things in life! Bad credit keeps you from buying a new car, expanding your business, and paying for your college education. To fund these things, you need plenty of cash or good credit to get approved for financing.
A higher credit score helps give lenders confidence that you'll repay your loans. Excellent credit habits like making on-time payments over time help establish your creditworthiness. Financial institutions will be more willing to increase your credit limits and give you bigger loans to buy your dream car or expand your business!
Having access to loans with lower interest rates also prevents you from being vulnerable to loan sharks who lend money while charging very high-interest rates. When your credit score keeps you from qualifying for low-interest rates, high-interest lenders are willing to offer lines of credit—but the terms and interest rates can make it challenging to repay the loan.
2. Take Advantage of Good Credit Card Deals
Credit card companies offer attractive deals to bring in new consumers. These deals can include bonus points during signup, balance transfers at 0% interest rates for a limited time, and cash-back rewards.
However, these credit card deals are only available to those that have high credit scores. Your low credit score can keep you from qualifying for credit cards that offer points, no interest, and rewards!
It's time to "fix my credit" and improve your credit scores to take advantage of credit cards with better perks to help you reduce costs on travel, save money on shopping, and more!
3. Lower Your Interest Rates Significantly
Financial institutions lend money to make money from borrowers by charging interest. However, the interest rate they charge can depend on the borrower’s credit score and the kind of loan on offer. For example, the average credit card annual percentage rate (APR) is 16.28%—but with a good credit score, you can qualify for credit cards with lower interest rates than that.
Using high-interest rates is how creditors protect themselves from the potential of borrowers skipping out on payments to repay a loan. However, high credit scores tell creditors that you're not likely to default! They reward you with access to loans and lines of credit with lower interest rates. If you're suffering from high-interest rates, it's time for the best credit repair in Dallas TX!
4. Save Money Long Term
High-interest rates mean you pay more for a loan over time than you would be with lower interest rates! You're buying the same car or home, but it becomes a more expensive purchase with a high-interest loan. Plus, your monthly payments are higher than with better credit scores and lending terms.
With high credit scores, you can refinance your mortgage and lower your repayment amounts. Having access to loans and credit at low-interest rates will save you money over time. It's worth it to "fix my credit" before applying for a new car loan or mortgage!
Repair Your Credit Today
If you're ready for these four financial moves that come with better credit, let's work together to "fix my credit" score! Credit Divs is the best credit repair in Dallas TX. Repairing your credit will open up more financial opportunities and save you money every month and long-term! Schedule your consultation with us today.